- November 16, 2023
- Posted by: Rogers Property Group
- Categories: Australia Home Owners, Australian Property Market, Brisbane Property Market, Latest News
The last few years have been an extremely trying time for the building industry and it customers. The high inflation that the Australia government has created due to its monetary policy around the virus period and the overstimulation of the building market has caused untold damage. Unprecedented cost increases and the requirement to keep fixed price contract pushed many builders into liquidation and left many customers with half completed houses that building insurance was required to fix.
Time has moved on and the all the damage that could have been done, has been done. The market is now in recovery. Any builders that were going to go into liquidation have and things have pretty much returned to normal. Building prices have come back ever so slightly and build times have returned to normal.
Clever investors are now realising that all the turmoil has created an opportunity.
There is a massive demand for housing in Australia right now. Demand is high and the market is undersupplied. And what is worse is that there is no new supply coming onto the market.
Although building prices have flattened out and build times are back to normal, people are still scared about building. They have heard the scary stories and are frightened to take the plunge to build. Without the demand for building, the value of developed land has dropped greatly. It is now cheaper to find land and build a house, then it is to buy a second-hand house. Investors are now coming to the understanding that they can make a considerable profit on going through the building process. It is definitely something to consider at the moment. Building customers need to still be careful and go through a check list of points to ensure that the builder that they are using is still financially viable and that the customer is still covered. If you want a copy of this check list, then please get in touch with us here at Rogers Property Group. Just drop us an email here.
In summary, yes, it is now safe to build again and in fact it is a very good option to increase equity in your property immediately on completion. However, you do need to still be careful and do your homework as always.